ABUJA, Nigeria (VOICE OF NAIJA)-The Federal Government of Nigeria, through the Debt Management Office (DMO), has opened subscription for its June 2025 tranche of the Federal Government of Nigeria (FGN) Savings Bonds, offering attractive interest rates to retail investors.
According to the DMO, the offerings include a two-year bond maturing on June 11, 2027, with an annual interest rate of 16.121%, and a three-year bond maturing on June 11, 2028, with a higher annual return of 17.121%.
The subscription window opened on June 2, 2025, and will close on June 6, 2025, with settlement set for June 11, 2025.
Interest (coupon) payments will be made quarterly on September 11, December 11, March 11, and June 11 throughout the life of the bonds.
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Each bond unit is priced at N1,000, with a minimum subscription of N5,000, and thereafter in multiples of N1,000, up to a maximum of N50 million.
The FGN Savings Bond is designed for retail investors, offering a safe and government-backed investment opportunity.
It qualifies as a trustee-eligible security under the Trustee Investment Act, and is exempt from taxes for pension funds under the Company Income Tax Act and Personal Income Tax Act.
Listed on the Nigerian Exchange Limited, the bond also counts as a liquid asset for banks when calculating liquidity ratios.
Investor appetite for longer-tenure debt instruments has been on the rise.
At the May 2025 FGN bond auction, there was overwhelming demand for the 19.89% FGN May 2033 bond, while interest in the 19.30% FGN April 2029 bond was comparatively muted, according to recent data from the DMO.